Mongolia faces hurdles in ramping up coal exports

* Mongolia wants to boost coal exports but needs investors * Infrastructure strained by trade with giant neighbours * Needs to weigh control of resources against incentives

ZHUHAI, China Sept 28 - Mongolia, with three times as much coal reserves as top thermal coal exporter Indonesia, is eager to boost its own exports of the fuel, but faces the dilemma of luring investors into the sector while still keeping control.
Shipments from the landlocked nation, dwarfed by neighbours Russia and China, will rise 30 percent in 2009 from a year earlier, to more than 5 million tonnes, but still less than half the government's target of 12 million, an industry official said.
"We could produce more, but we could not ship it out," Luvsandagva Davaatsedev, chairman of the Mongolia Coal Association, a group of coal miners, told Reuters on the sidelines of the Asia-Pacific Coal Trading Conference in Zhuhai.
The key problems were insufficient investment, poor infrastructure and a lack of direct access to other markets, he added. Mongolia ships the bulk of its coal to China, the world's largest consumer and producer of the fuel.
China's coal imports from Mongolia increased about a half from a year earlier to 3.63 million tonnes in the first eight months of this year, official Chinese customs data showed.
"Mongolia and China are considering a green-tech power plant at the Shivee Ovoo coal mine in the southeast of Ulaanbaatar that could consume 12-15 million tonnes of coal a year," Davaatsedev said. "The electricity output would then be exported to China."
With only state-owned coal firms are allowed to use the railways, private coal companies are forced to ship their product by road, adding to their costs, Davaatsadev said.
"The existing railway link was too busy to handle more coal cargoes because it was also a main route for Russian exports to China," he said.
A year ago, Davaatsedev had said Mongolia's coal exports to China could rise sixfold in five years, to about 25 million tonnes if certain large projects were to come online.
TAVAN TOLGOI DELAY
Eyeing major projects but short of funds, Ulaanbaatar is divided between retaining control of its coal assets and offering incentives to woo foreign investors, particularly to mine the Tavan Tolgoi coal deposit in southern Mongolia, which has proven reserves of more than 6 billion tonnes.
"We have lost some time there due to ownership disagreement," Davaatsedev said.
Coal production in the Tavan Tolgoi region had been expected to rise quickly and sharply if the government had approved the ownership structures.
Mongolia needs foreign participation to expand mine exploration, improve infrastructure facilities including rail, road, power and communication links besides revamping its laws, Davaatsedev added.
"Mongolia even does not have enough machines and equipment, or the technology, to perform regular checks on coal exports at its customs and inspection departments," he said.

Source: Reuters
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic